MeitY backs DPIIT’s hybrid framework on use of copyrighted content for AI training

The Ministry of Electronics and Information Technology (MeitY) has endorsed a framework proposed by a DPIIT-appointed committee to govern the use of copyrighted material for training artificial intelligence systems, signalling the government’s intent to balance rapid AI development with the rights of creators.

The endorsement comes amid a global wave of lawsuits, with publishers and individual authors taking companies such as OpenAI, Microsoft and Meta to court over alleged copyright infringement for using protected content to train large language models without consent or compensation.

India’s AI Copyright Gamble: DPIIT’s hybrid licensing plan sparks battle over consent and fair pay

In its comments, annexed to the government’s working paper on AI and copyright, MeitY said the proposed hybrid model, combining mandatory blanket licensing for AI training with a statutory right to remuneration for copyright holders, offers an equitable approach.

“After careful examination of the hybrid model of statutory licensing with revenue-based compensation proposed by the committee, the ministry is of the opinion that the model has the potential to meet its multifaceted objectives across technological innovation and creative labour,” MeitY said, as per a Moneycontrol report.

The ministry acknowledged that wide access to datasets is critical for building accurate, inclusive and competitive AI systems, but stressed that such access must be accompanied by proportionate compensation for rights holders.

Under the proposed framework, a central body—the Copyright Royalties Collective for AI Training (CRCAT), would be set up to collect and distribute royalties.

MeitY recommended that CRCAT prescribe a minimum revenue threshold, beyond which AI developers would be required to share revenues with copyright owners.

This, the ministry said, would prevent early-stage developers and startups from facing compliance costs too early, while ensuring that creators are compensated once AI systems begin generating commercial returns.

MeitY also called for a robust and transparent revenue-sharing mechanism, cautioning that ambiguity in royalty calculation or distribution could lead to disputes. It urged CRCAT to adopt a participatory and communicative approach to minimise the risk of litigation.

DPIIT releases working paper on copyright and AI, proposes hybrid licensing model

However, the proposed framework is not without opposition. Industry body Nasscom has dissented, arguing that a text and data mining exception—paired with opt-out rights for copyright holders—would better support India’s AI ecosystem. This alternative view has been recorded separately in the working paper.